Figures 5, 6 give a better sense of the relative structure of protection across time periods. U.S. exports to Argentina include machinery, mineral fuels, aircraft, and plastics. These, to a large extent, may be actually attributable to the liberalization of tarde that ultimately led to the survival of only the internationally competitive industries in Argentina. Only relative prices matter and thus the anti-export bias in trade policy can arise by protecting the import competing industry or by directly taxing the export sector. [1] The U.S. has largely maintained a moderate trade surplus with Argentina, however. Instead, Transport, Machinery, Metals, Plastics, Minerals, Chemicals, and Wood also show higher tariffs than Agriculture, but the differences are much less pronounced (Fig. [2] These surpluses were bolstered as much by growing exports as by a marked recovery in terms of trade for Argentina, which by 2010 had improved 40% over the level prevailing in the 1990s. These data are used to document the high degree of anti-export bias of Argentine trade policy. International trade and trade policies are often identified as a major culprit. In the end, Argentine growth never took-off. See text. Argentine tariffs remained high from 1900 to 1913 (23.4%) and only declined to around 18%, on average, in the post World War I period. In contrast, the most recent export tax intervention of the 2000s had heavily affected Dairy, as well. In Sect. While tariffs had been increasing since the early 1920s (due to mostly a revenue motive), there was a sharp jump in 1930 when the average import tariff increased from 16.7 to 28.7% in 1933. At the turn of the last century, the Argentine economy was on a path to prosperity that never fully developed. This describes an import substitution strategy that might drive the economy towards near autarky. However, we were able to compile data for Brazil based on Colistete (2009) and Taylor (1998). Starting in the 1930s, Argentina adopted a strategy of strong import substitution that can still be seen in our data. The share of Processed Food was relatively stable throughout the period, with a slight increase starting in the mid-1980s. 5 and 6 is how agriculture was left unprotected, relative to other sectors in the economy. The second episode of large tariff cuts took place between 1976 and 1979, during the Military dictatorship. That made adjustment hard when external shocks hit. Taylor (1998), for instance, reports that around 1960, the overall rate of protection in Brazil was higher than that of Argentina. Argentina, and Junta de Granos (1975). Agriculture is intensive in land, which is mostly owned by richer landowners. Editorial El Ateneo, Buenos Aires, Galiani S, Porto G (2010) Trends in tariff reforms and in the structure of wages. The relative un-abundance of skilled labor and capital (compared to the developed world) also contributed to a specialization in agriculture, especially in the early years. Beef exports to the U.S. were suspended in August 2000 when Argentine cattle near the border with Paraguay (whose authorities refuse to vaccinate cattle against highly contagious hoof and mouth disease) were discovered to have anti-bodies for the infection. [2] The nation's perennial trade deficit in manufactures widened during this expansion, however, and exceeded US$30 billion in 2011. This success materialized amidst periods of pro-agro bias (as in the early 1990s) and anti-agro bias (as in the 2000s).Footnote 11. According to Clemens and Williamson (2002), the decline in Latin America’s terms of trade was of nearly 40%. In consequence, the trend in the share of exports of Other Products is almost a mirror image of the trends in Agriculture, with a clear upward trend from around 25% in the early 1970s to nearly 50% in 2006. The outbreak of the oil crisis in the 1970s was the start of a long period of economic downturn, which culminated in the severe … Modest Argentine surpluses with China turned into deficits in 2008, however, and anti-dumping measures enacted subsequently triggered a Chinese boycott of its top Argentine import, soy oil, in 2010. These reforms came in two stages. WITS (World Integrated Trade Statistics) provides detailed data on tariffs based on the Harmonized System from 1991 to 2006. Source. A renewed devaluation of the peso contributed to a US$700 million surplus with Mercosur in 2009, though deficits of US$1.8 billion were recorded in 2010 and 2011. Policies of "free trade" financial deregulation pursued by Argentina's last dictatorship led to a sudden, record deficit in 1980 and, by 1981, a mountain of bad debts and financial collapse. Anales de la Academia Nacional de Agronomía y Veterinaria, Argentina, Reca L (2007) Cambios en el Sector Agropecuario Argentino 1950–2005. There are more than 300 U.S. companies doing business in Argentina, employing more than 150,000 workers. Part of Springer Nature. Until 1930, 93% of agricultural growth is explained by the addition of new arable land, while improvements in yields account for the remaining 7%. In Sect. Note that, during the late 1800s and early 1900s, import tariffs were one of the main sources of revenues for countries like Argentina (i.e., countries abundant in land, scarcely populated, and with limited access to capital markets). Between 1870 and 1930, Argentina experienced robust growth and remained wealthy by world standards. Tariff data from 1966 to 1990 are available only on hard copies of the Guía Práctica, a publication of Argentine Customs detailing the tariff rates for thousands of product lines using the NADI nomenclature (Nomenclatura Arancelaria y Derechos de Importación). The first analysis covers the period 1890–1966 and is based on the abundant, but fragmented, data available in the literature. 12, implicitly shows how Argentine agricultural production responded to the set of policies and shocks faced by the country. Record taxes on grain exports imposed by the administration of President Juan Perón and an increasing need for costly fuel and machinery helped result in a nearly-unbroken string of trade deficits between 1949 and 1962, however. There are at least three factors that made the model become increasingly unsustainable. Prehistory in the present territory of Argentina began with the first human settlements on the southern tip of Patagonia around 13,000 years ago. The same pattern of factor endowments is seen in more recent year. 13. The explanation of such a debacle is complex. In Table 9, we report the growth of the industrial output per worker for Argentina and several more developed countries. The trends, in turn, can be understood with changes in the way that different governments weighed the distributional conflict and with changes in the constraints faced by those governments. The case of Food Processing is interesting, because the sector ranked third in 1966–1970 but subsequently lost protection relative to Textiles (starting in 1971) and Stones, Machinery, Metals, Plastics, and Transport Equipment up until the 1990s. The highest tariff rates can be found in Latin American countries. This growth was driven by at least three major factors: an increase of the harvested area following the expansion of the Argentine border (after the “Campaña al Desierto—”military campaigns against the indigenous local population); the penetration of the railways (mostly financed by British capitals) that facilitated crop transportation and exports; and booming international markets for exports (Cortés Conde 1993). In consequence, the 1980s were actually a period of reversal to protection, because the relatively flat trend in the average tariff came together with an increase in non-tariff barriers. The following discussion focuses on events in Argentina from the time of European settlement. Relative endowments in 2000 for a sample of the most relevant countries for our purposes are listed in Table 4. 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